Stats: 3,190,495 members, 7,940,887 topics. Date: Thursday, 05 September 2024 at 01:24 PM |
Nairaland Forum / Nairaland / General / Politics / NGOZI Okonjo-iweala Explains Why Oil Bench Mark Was Fixed At $75 (675 Views)
Petroleum Minister Ibe Kachukwu Deny Saying Fuel Pump Price Will Be Fixed At N97 / Why Oil Marketers Want Payment Before May 29 / Okonjo Iweala Explains Why Fuel Subsidy Account Is Empty (2) (3) (4)
NGOZI Okonjo-iweala Explains Why Oil Bench Mark Was Fixed At $75 by Olanlere11: 9:16am On Oct 12, 2012 |
The Federal Government is insisting on the benchmark price of $75 per barrel of crude oil in order to shore up the economy and make for macroeconomic stability, the Minister of Finance, Dr. Ngozi Okonjo-Iweala, has said. Okonjo-Iweala, who spoke to journalists shortly after the presentation of the 2013 budget proposals to the National Assembly by President Goodluck Jonathan on Wednesday, said $75 was the sensible price to fix the benchmark. The National Assembly, however, is insisting on a benchmark of $80 per barrel, after backing down from $85 that its joint committee had earlier recommended. The minister said the budget was predicated on the assumption that the country would produce 2.53 million barrels of crude oil daily. According to her, another reason that makes the $75 benchmark attractive to the Executive arm of government is the need to ensure prudent management of finances. Okonjo-Iweala said in order to reduce friction, the Executive would be meeting with the National Assembly to put forward the argument why government retained the $75 benchmark in the budget proposals. She said, “The benchmark is based on an econometric module that estimates five and 10 years moving averages. Government cannot just take the number from anywhere. You have to have a basis for developing the benchmark. “The benchmark for Algeria is $37; Venezuela, $50; Qatar, $55; Kuwait, $60; Saudi Arabia, $60; Oman, $75; and Angola, $77. What government is proposing is within the ambit of what other countries are proposing. We don’t see any country with $80 benchmark.” She added, “The benchmark price will safeguard what is precious to the economy, which is the macroeconomic stability of the country. If we go with a high benchmark, a lot of liquidity will be thrown into the system, because it is not just the Federal Government we have to worry about. “The benchmark also affects the money that goes to the states. So, even if you are trying to reduce the Federal Government’s fiscal deficit, the states are not under that obligation. They will be spending and that will throw up a lot of liquidity, which can lead to higher inflation and depreciation of the exchange rate, which will force the Central Bank of Nigeria’s governor to raise interest rates, which is not pleasant for the private sector.” The minister argued that the uncertainties currently ravaging the world and occasioning low demand would affect countries that depended on a single product. She added that a petroleum product’s subsidy of N971bn was provided in the 2013 budget as against the 2012 figure of N888bn. Okonjo-Iweala explained that the attention given to women in the budget was part of the administration’s agenda for improving the country’s human development indicators. http://businessnews.com.ng/2012/10/11/ngozi-okonjo-iweala-explains-why-oil-benchmark-was-fixed-at-75/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NigeriaBusinessNews+%28Nigeria+Business+News%29 |
Re: NGOZI Okonjo-iweala Explains Why Oil Bench Mark Was Fixed At $75 by Idokojimmy: 10:56am On Oct 12, 2012 |
Now that Mama Finance has simplified it, I hope those guys will bury their sword. |
Re: NGOZI Okonjo-iweala Explains Why Oil Bench Mark Was Fixed At $75 by Euroclydon(m): 11:05am On Oct 12, 2012 |
![]() ![]() ![]() |
Re: NGOZI Okonjo-iweala Explains Why Oil Bench Mark Was Fixed At $75 by usmanyaro17: 11:09am On Oct 12, 2012 |
The NASS has its own hidden agenda for advocating $80 per barrel,I think the finance minister understands the terrain very well why not allow her to do her job..... |
Re: NGOZI Okonjo-iweala Explains Why Oil Bench Mark Was Fixed At $75 by Euroclydon(m): 12:57pm On Oct 12, 2012 |
usmanyaro17: The NASS has its own hidden agenda for advocating $80 per barrel,I think the finance minister understands the terrain very well why not allow her to do her job..... Na everything Iweala go fix? Even the National Stadium in Abuja,na she dey coordinate am... God is her strength. |
Re: NGOZI Okonjo-iweala Explains Why Oil Bench Mark Was Fixed At $75 by HammedSodiqq: 1:20pm On Oct 12, 2012 |
Now that I know, I give up my case |
(1) (Reply)
Okorocha Punches Governor Obi’s Aide Over Seat / They Walk Through The Valley, But Fear No Death / Strictly For INTELLECTUALS Only...
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 11 |